The markets tanked when the results of the EU referendum showed that the British public had voted to exit the European Union and it continued to slide as predicted by numerous expert prior to the referendum. However, the slide continued today in the British markets as the pound reached its lowest point in 31 years and shares of leading banks like Royal Bank of Scotland and Barclays sank to such a degree that they had to be suspended from trading. In such a situation, the Chancellor of the Exchequer George Osborne offered reassurances to the stakeholders in the British economy amid widespread panic.
He said, "I said we had to fix the roof so we were prepared for whatever the future held and thank goodness we did. Only the UK can trigger Article 50. And in my judgement, we should only do that when there is a clear view about what new arrangements we are seeking with our European neighbours." He added, "In the meantime, during the negotiations that will follow, there will be no change to people's rights to travel and work and to the way our goods and services are traded or to the way our economy and financial system is regulated."
However, the Financial Times believes these reassurance would not amoung to much. "Mr Osborne will continue as chancellor for the moment, which, in fairness, serves the cause of short-term financial stability alongside the swap lines and £250bn of cash the Bank of England has on hand to support bank liquidity. Ozzy more than ever this morning had the blanched look of a plant growing under a stone. He said he had spent the past 72 hours talking to senior economic figures, such as US Treasury secretary Jack Lew. He has also been in contact with the chief executives of big financial institutions. This will have been a good opportunity for Mr Osborne to warm them up to ask for a job later. Westminster is in turmoil that makes the markets look like a nursery tea party. His astute chief of staff Rupert Harrison went to work for asset manager BlackRock well before the referendum. Mr Osborne would be wise to have a Plan B of his own. He cannot expect to remain chancellor."
